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Northern jobs good for Northern mines

It's obvious the territorial government would like to stay far away from the saber-rattling over unionized jobs at the Ekati diamond mine.

Stepping on that hornet's nest risks putting the GNWT into one of two inevitable positions: one that would either soil its pro-industry bona fides or antagonize the Union of Northern Workers, with whom the government is already engaged in a protracted contract dispute over its own workers.

Wally Schumann, minister of Infrastructure, Tourism and Investment, hinted to CBC last week, that the GNWT may intrude if asked to by the union and Ekati owner Dominion Diamond.

“We don't impose ourselves on contracts or employees in a manner that tells a private company how to run their business,” said Schumann.

“But I am concerned about meeting our socio-economic agreements and (working) with all parties involved to make sure northern jobs are protected.”

Schumann's looming role as King Solomon having to decide how to divide a child between two quarreling parties comes as Dominion announces its intent to lay off 150 entry-level workers by October and replace them with contract workers. The company cited unacceptable levels of absenteeism as the reason behind the move.

Most of these affected workers are Northerners, many of them from Indigenous communities. The announcement was condemned by Tlicho Grand Chief George Mackenzie, who reminded Dominion of its obligation to hire Tlicho workers under an impact benefit agreement signed with the Tlicho government. The mine also has a social-economic agreement with the GNWT, which targets a 62 per cent northern workforce.

To date, the mine has been unable to achieve that figure, with only about 47 per cent – about 815 workers – coming from the NWT. Replacing the 150 affected employees with contract workers is bound to make that figure even lower.

The union, whose credibility took a beating last time there was a dispute – over its defence of paid flights from the south for non-NWT resident workers – has vowed to file a complaint with the Canada Industrial Relations Board.

Whatever the extent the absenteeism problem, it is in interest of Dominion, the workers and the government to come up with a solution that avoids layoffs and contract workers from the south.

Dominion may achieve better productivity in the short term but it will come with the loss of considerable goodwill. Diamond mines exist in the territory because up to this point, the industry has been made up, for the most part, of excellent corporate citizens who achieved significant buy-in among First Nation communities through its willingness to engage with them.

This latest announcement by Dominion puts that at risk. Considering that Ekati has another 15 years of operations left, with the possibility for extensions through other untapped resources, it would seem prudent to continue cultivating that goodwill.

Schumann should write the company to remind it of that. Perhaps all that's required is some frank dialogue. Best to get on with that now and not kick the hornet's nest down the road when it's too late to simmer things down.